Shares of Guaranty Financial Group Inc. plunged 12% Tuesday, to $3.59, after the Austin company said it was extending the deadline for its rights offering.
The $16.4 billion-asset thrift said June 18 that it planned to raise $150 million through a rights offering that would close July 17. On Monday it said the offering would close Aug. 29. Guaranty, which has operations in Texas and California and has been independent only since December, said it needs to raise more capital to fortify its balance sheet and support future growth. It lost $10 million in the first quarter as nonperforming assets, particularly loans to residential builders in California markets, increased 59% from a quarter earlier, to $284 million.